ICT Procurement trends in Manufacturing - Enterprise ICT investment plans

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ICT Procurement trends in Manufacturing -
Enterprise ICT investment plans
One-Stop Shop for Business Information
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Summary
Product SynopsisThis report presents the
findings from a survey of 166 manufacturers
regarding their approach to Information
Communications Technology (ICT) procurement. The
survey investigates the way that manufacturers
like to purchase technology, as well as the major
IT and business objectives influencing their IT
investment strategies. Introduction and
LandscapeWhy was the report written?To
highlight the criteria on which manufacturers
select their ICT providers as well as the roles
which have influence while making ICT purchasing
decisions.
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What is the current market landscape and what is
changing? Manufacturers favour deploying
technologies on-site as opposed to hosting.
However, preference towards hosted services is
slowly gaining traction. What are the key
drivers behind recent market changes? Manufacturer
s are slowly increasing the adoption of hosted
model as they look to improve their scalability
and reduce costs. What makes this report unique
and essential to read? Kable Global ICT
Intelligence has invested significant resources
in order to interview CIOs and IT managers about
their IT Procurement. Very few IT analyst houses
will have interviewed 160 ICT decision makers in
the manufacturing industry in H2 2012.
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Key Features and BenefitsProvides insights into
manufacturers preferred buying
approaches.Comprehend the business objectives
that manufacturers are looking to achieve through
their IT investment strategy.Appreciate the IT
objectives that manufacturers are looking to
achieve through their IT investment
strategy.Understand the factors that are
influencing manufacturers decision to select an
ICT provider.Understand which organisational
roles influence ICT purchasing decisions and
signing off budgets. 
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Key Market Issues The survey reveals that 56 of
manufacturers prefer to procure technologies
directly from suppliers, followed by through
local resellers and national resellers. Kable
believes that local resellers are preferred more
than national resellers in large part due to
their ease of availability, ability to provide
timely support services, and competitive
pricing. In order to respond to global
competitive challenges, manufacturers need to
devise effective IT strategies. The survey shows
that the IT objectives of better demonstrate the
value of IT to the business and use IT to
support revenue growth are the most important
factors influencing manufacturers IT investment
strategies, with average ratings of X on a scale
of 1 to 4.
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Due to the current economic uncertainty,
manufacturers have to deal with constrained
budgets, which is forcing the need for an optimum
utilisation of resources. As a consequence,
raising efficiency is considered to be an
important business objective amongst
manufacturers.According to Kables survey,
manufacturers consider price to be the most
important criteria when choosing an ICT
provider.The survey shows that a large
proportion of manufacturers believe that their
ICT infrastructure is somewhat complex, with
several enterprise applications, hardware
manufacturers, operating systems, and
communications technologies. Key
Highlights According to Kables survey, 41 of
manufacturers are planning to raise their ICT
investments in 2013, which is an increase of 7
compared to 2012.
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Kables survey shows that 80 of manufacturers
prefer deploying enterprise applications on-site
followed by security and content management, as
these technologies handle confidential data, and
manufacturers want full control over such systems
and solutions.Increasing revenues and customer
satisfaction also play a key role, as
manufacturers are keen to increase their organic
growth and recognise the value of consumer
recognition for their products, since it will
eventually help to increase their sales
lines. According to Kables survey, manufacturers
consider leading-edge technology to be the most
important criteria when choosing an ICT provider
with an average rating of X on a scale of 1 to
4. Manufacturers rate the CIO/IT department and
the CEO as the most influential authorities when
making ICT purchasing decisions, with both
receiving the highest average rating of X on a
scale of 1 to 4.
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Table of Contents

• 1 Enterprise ICT investment trends
• 1.1 Introduction
• 1.2 Survey demographics
• 1.3 ICT budget changes
• 1.4 ICT investment priorities
• 2 ICT procurement trends
• 2.1 Introduction
• 2.2 Purchasing channels
• 2.3 Business objectives influencing IT investment
  strategy
• 2.4 IT objectives influencing IT investment
  strategy
• 2.5 ICT provider selection
• 2.6 Influencers
• 2.7 ICT infrastructure environment complexity

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